13TH NOVEMBER 2006
TOYS 'R' US ISSUED WITH AN ASFO
In the run-up to Christmas and the toy buying season, Toys 'R' Us, the US-based retailer, is the recipient of Ethical Consumer magazine's first ever ASFO � anti-social finance order.
In 1999 the UK government introduced ASBOs � anti-social behaviour orders � to encourage responsible behaviour on the streets of England. In 2006 Ethical Consumer decided to introduce ASFOs � anti-social finance orders � to encourage socially responsible behaviour in boardrooms around the world.
Toys 'R' Us first came to the attention of Ethical Consumer researchers in the November 2004 edition issue of Multinational Monitor. The publication announced that Toys 'R' Us had paid no corporation tax at all in the USA in 2003, despite declaring profits of $147 million.
We also discovered from our database that, according to the Toys 'R' Us Inc 2004 Annual Report, its Chairman and CEO had received over $3 million in remuneration (not including long-term bonuses) in 2004.
In its latest report to the US government, Toys 'R' Us, instead of paying tax, appeared to have received a tax rebate of $59 million in the year to January 2005, despite making a profit of $193 million. The report also contained the following sentence: �The company establishes tax reserves when, despite our belief that our tax return positions are fully supportable, we believe it likely that certain of these positions will be challenged, and that we may not succeed in defending our positions.� In the UK the company paid �873,000 tax in the year to January 2006 on a turnover of �508 million.
We contacted Toys 'R' Us for comment. It replied: �Toys 'R' Us complies with all laws and pays all of its taxes as required by law".
Where an ASFO is awarded, Ethical Consumer calls on consumers to avoid a company's products for twelve months, to help persuade companies to contemplate making a fair contribution to shared social costs.
Ethical Consumer recommended the following toy brands as Best Buys in its latest issue:
BRAND (ETHISCORE)
- Escor Toys (17) www.escortoys.com
- Lanka Kade toys (16) www.lankakade.co.uk
- Green Board Games (15.5) www.greenboardgames.com
- Holz Wooden Toys (15.5) www.holz-toys.co.uk
- Jumping Frog toys (15.5) www.jumpingfrogtoys.co.uk
Worst scorers in Ethical Consumer's toys report were:
BRAND (ETHISCORE)
- Chicco (10)
- Mattel (9)
- Hasbro (8.5)
- Toys R Us (7)
- Walt Disney (6)
ENDS
NOTES TO JOURNALISTS
For more information on tax justice campaigning and the emerging calls for corporate social responsibility in tax affairs, see:
www.taxjustice.net
www.citizenworks.org
Ethiscore is a numerical rating (out of 20) designed to allow consumers to compare companies across a range of corporate responsibility issues, including the environment, human and animal rights. The higher the score, the better a company�s ethical record. For more information visit www.ethiscore.org.
Copies of the �It's playtime� report on toys are available to member of the press FREE OF CHARGE. Please call 0161 226 2929 or email mary@ethicalconsumer.org for your copy.
Press enquiries: office hours please contact the Ethical Consumer office on 0161 226 2929. Out of hours contact Ruth Rosselson on 07944 674 291 or Mary Rayner on 07816 754 032. Postal address: Unit 21, 41 Old Birley Street, Hulme, Manchester M15 5RF.
If you do not wish to receive press releases from Ethical Consumer, reply to this email with the word �unsubscribe� in the subject heading. If you only wish to receive press releases on certain subjects, please respond with a brief description of your interests.